Is the Real Price for the 6D Mark II going up 38%?

[Mt Spokane Photography]

Canon is a Japanese company, and calculates its financial records in Yen. They sell cameras to their various world wide distributors, like Canon Americas, in Yen.


In 2012, the price in yen based on the USD to Yen exchange rate was $2100 X 78.412 = 164,062 Yen.

In 2017, the price in Yen based on current exchange is $2000 X 112.2 = 224,400 Yen.

The increased price (60338 yen) is 60338/164062 = 36.777%

You can correct for inflation, but this is still a significant price increase. I suspect, but have not computed a similar increase in other currencies. The Yen in2012 was very strong when compared to other currencies, while now, the US dollar happens to be very strong.

 

[BeenThere]

Let's hope the 6D2 is 36.777% better than the original.

 

[Keith_Reeder]

Its range will be 36.777% more dynamic, I'm sure...

 

[hne]

Canon is a Japanese company, and calculates its financial records in Yen. They sell cameras to their various world wide distributors, like Canon Americas, in Yen.


In 2012, the price in yen based on the USD to Yen exchange rate was $2100 X 78.412 = 164,062 Yen.

In 2017, the price in Yen based on current exchange is $2000 X 112.2 = 224,400 Yen.

...except you're doing your calculations backwards. The price in Yen at launch for the 6DmkII is ¥243000 where the original 6D was ¥195000 (¥204886 adjusted for inflation) so the 6DmkII should be 18.6% better. The price is set in Yen and the US is neither the only nor arguably even the largest single market for Japan and as such not the definite answer as to what an acceptable price for the camera could be. What it sells for in the US is irrelevant for price comparisons as that is definitely rounded to a convenient value. Same goes for the price in EUR and GBP.

 

[unfocused]

I'm hoping this is tongue-in-cheek, as it illustrates perfectly the fallacy of simplistic exchange rate comparisons.

Has Canon given their employees any raises since 2012?

Have any suppliers increased their prices since 2012?

Are regulatory costs the same today as in 2012?

Are their shippers charging them in Yen or Dollars?

Does Canon pay U.S. employees in Yen?

Can Canon buy ads in the U.S. in Yen?

Canon is an international company. It has to buy goods and services and pay employees in the local currency. The embedded cost of a camera that is actually paid in Yen is just a small percentage of the total cost of the product.

 

[Keith_Reeder]

I'm hoping this is tongue-in-cheek

The bolded, enlarged, red text suggests otherwise...

 

[Mt Spokane Photography]

I'm hoping this is tongue-in-cheek, as it illustrates perfectly the fallacy of simplistic exchange rate comparisons.

Has Canon given their employees any raises since 2012?

Have any suppliers increased their prices since 2012?

Are regulatory costs the same today as in 2012?

Are their shippers charging them in Yen or Dollars?

Does Canon pay U.S. employees in Yen?

Can Canon buy ads in the U.S. in Yen?

Canon is an international company. It has to buy goods and services and pay employees in the local currency. The embedded cost of a camera that is actually paid in Yen is just a small percentage of the total cost of the product.

Yes, its a tongue in Cheek response to those who think the price is actually lower than in 2012.

Obviously, its not simple, but with some asking why the price is lower, its definitely not lower in Yen.

There are all kinds of ways to slant the figures, I merely took a very simple US dollar approach, as I noted, if you start using other currencies, you may get a different answer, since all currencies change in value. we do not know what Canon North America paid in Yen for their cameras in 2012, or in 2017, for that matter, we can only say that the yen equivalent is a lot higher.

I did not speculate on the reasons for the difference, just observed that things can be different than surface appearances.

I did not want to get into arguments about how many were sold in different countries either, certainly, the 6D sells well in North America and Europe, sales figures in Asia are inaccurate because of the huge numbers of gray market cameras shipped by the container load to the US and likely as many being shipped to Europe. They count as sales in Asia, but thats a distorted figure, since they are really diverted to other parts of the world.

 

[hne]

I'm hoping this is tongue-in-cheek, as it illustrates perfectly the fallacy of simplistic exchange rate comparisons.

Has Canon given their employees any raises since 2012?

Have any suppliers increased their prices since 2012?

Are regulatory costs the same today as in 2012?

Are their shippers charging them in Yen or Dollars?

Does Canon pay U.S. employees in Yen?

Can Canon buy ads in the U.S. in Yen?

Canon is an international company. It has to buy goods and services and pay employees in the local currency. The embedded cost of a camera that is actually paid in Yen is just a small percentage of the total cost of the product.

Yes, its a tongue in Cheek response to those who think the price is actually lower than in 2012.

Obviously, its not simple, but with some asking why the price is lower, its definitely not lower in Yen.

There are all kinds of ways to slant the figures, I merely took a very simple US dollar approach, as I noted, if you start using other currencies, you may get a different answer, since all currencies change in value. we do not know what Canon North America paid in Yen for their cameras in 2012, or in 2017, for that matter, we can only say that the yen equivalent is a lot higher.

I did not speculate on the reasons for the difference, just observed that things can be different than surface appearances.

I did not want to get into arguments about how many were sold in different countries either, certainly, the 6D sells well in North America and Europe, sales figures in Asia are inaccurate because of the huge numbers of gray market cameras shipped by the container load to the US and likely as many being shipped to Europe. They count as sales in Asia, but thats a distorted figure, since they are really diverted to other parts of the world.

Sorry, I hope I didn't upset you.

I mistakenly, after a very long work day and a couple of foreign languages too many, read your initial post as if someone was wrong on the internet and thought I could calm an approaching troll horde by pointing out a few errors.

 

[Mt Spokane Photography]

Canon is a Japanese company, and calculates its financial records in Yen. They sell cameras to their various world wide distributors, like Canon Americas, in Yen.


In 2012, the price in yen based on the USD to Yen exchange rate was $2100 X 78.412 = 164,062 Yen.

In 2017, the price in Yen based on current exchange is $2000 X 112.2 = 224,400 Yen.

...except you're doing your calculations backwards. The price in Yen at launch for the 6DmkII is ¥243000 where the original 6D was ¥195000 (¥204886 adjusted for inflation) so the 6DmkII should be 18.6% better. The price is set in Yen and the US is neither the only nor arguably even the largest single market for Japan and as such not the definite answer as to what an acceptable price for the camera could be. What it sells for in the US is irrelevant for price comparisons as that is definitely rounded to a convenient value. Same goes for the price in EUR and GBP.

I'm not going to calculate inflation in Japan, and USA, simply because my basic premise is that the real price is higher, not lower. The actual amount depends on how you do the computation.

Inflation will lower the 2017 cost in 2012 currency or raise the price in 2017 currency, but exchange rates are a much larger factor. Same as not worrying about when and where Canon buys its components, pays for labor, cost of shipping, cost of repairs and maintenance, they have all gone up, so we would expect a price increase.

Its just due to stronger US currency that it appears the price dropped.

 

[BillB]

Canon is a Japanese company, and calculates its financial records in Yen. They sell cameras to their various world wide distributors, like Canon Americas, in Yen.


In 2012, the price in yen based on the USD to Yen exchange rate was $2100 X 78.412 = 164,062 Yen.

In 2017, the price in Yen based on current exchange is $2000 X 112.2 = 224,400 Yen.

Unless you have kept your money in yen and converted it to dollars to buy the cameras, the price to you of the Canon 6DII is $100 less than the initial price of the 6D. If you are keeping your money in yen, then you are right. It will cost you more yen to buy the 6DII than it did to buy the 6D, because of the changes in the currency exchange rate.

If the yen were stronger, presumably the price of the 6DII would be more than $1999, but it isn't.









...except you're doing your calculations backwards. The price in Yen at launch for the 6DmkII is ¥243000 where the original 6D was ¥195000 (¥204886 adjusted for inflation) so the 6DmkII should be 18.6% better. The price is set in Yen and the US is neither the only nor arguably even the largest single market for Japan and as such not the definite answer as to what an acceptable price for the camera could be. What it sells for in the US is irrelevant for price comparisons as that is definitely rounded to a convenient value. Same goes for the price in EUR and GBP.

I'm not going to calculate inflation in Japan, and USA, simply because my basic premise is that the real price is higher, not lower. The actual amount depends on how you do the computation.

Inflation will lower the 2017 cost in 2012 currency or raise the price in 2017 currency, but exchange rates are a much larger factor. Same as not worrying about when and where Canon buys its components, pays for labor, cost of shipping, cost of repairs and maintenance, they have all gone up, so we would expect a price increase.

Its just due to stronger US currency that it appears the price dropped.

 

[Talys]

Canon, like many large international companies, also probably presents results in both Yen, USD, and USD adjusted for constant currency. Even companies whose largest markets are in the US do this for their foreign sales.


Since a huge percentage of Canon's market is export, the sales are much more meaningful when comparing against past periods if adjusted for the currency fluctuations.

Also, most companies like Canon have different prices for different markets. The USD price or Euro or AUD or RMB prices depend a lot on what that market will bear and other local factors (for example, in New Zealand, the price will probably jump more than in the US).